City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 9, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance to Authorize the Issuance of Short-Term General Obligation Notes. [ROLL-CALL VOTE]
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ISSUE: Establishing a short-term funding program through the issuance of General Obligation Notes to finance City and Schools capital projects.
RECOMMENDATION: That City Council hold a public hearing, second reading and final passage on April 14; an ordinance (Attachment 1) authorizing the establishment of a short-term funding program up to $250 million to manage the short-term cash flow needs of the City's Capital Improvement Program including the Potomac Yard Metrorail Station.
BACKGROUND: The proposed ordinance authorizes the issuance of up to $250 million in General Obligation Notes (i.e., a line of credit) for FY 2018 capital projects, as well as projects identified in subsequent years for which debt has not been issued based on cash flow needs. This short-term funding program will provide low cost flexibility in the management of cash flow and support of ongoing construction of capital projects, most notably the Potomac Yard Metrorail Station where most of this line of credit will be used. It is expected that the City will be under legal obligation for the Potomac Yard Metrorail Station construction project before the end of June 2018 and as a result the City needs a contractually available source of funds to cover that obligation.
Since actual major station construction cash drawdowns may not occur for more than a year, establishing a short-term borrowing credit facility (in lieu of borrowing monies only to have them sit untapped or slightly tapped for a year or more) is the most cost-efficient way to put the necessary Potomac Yard Metrorail...
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